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tv   Taking Stock With Pimm Fox  Bloomberg  January 29, 2014 5:00pm-6:01pm EST

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>> this is "taking stock" wednesday, january 29, 2014. we are focusing on sports and business. dan marino, long-time base of the miami dolphins franchise, talking about this upcoming weekend super bowls player safety and a second career after football. facebook, the social network, out with its earnings. stock up today on "taking
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," first let's get headlines from my radio cohost. >> facebook reporting after the close of trading reporting revenue beating analyst estimates. facebook saw mobile advertising sales on the largest social network surpassing those of desk top promotions for the first time. qualcomm also out with its earnings. they reported fiscal first- quarter profits topping estimates. $1.26it of about $.26 -- per share. bernanke in the central bank announcing they will trim monthly bond buying to $65 billion. the dow falling 189 points. those are the top headlines at this hour. back to you. --top technology headlines facebook, lenovo, and microsoft making news. let's bring in bloomberg editor- at-large cory johnson.
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it feels like a triple tech play into one person. >> that's because i'm three times taller. >> i was not going to mention. purchasing motorola mobility from google? strange google getting into the business but it was first thought they were largely trying to get the patents. phones and all of the other fonts under development. the handsetep business and they wanted the patent. now they are selling the handset business with the patent. one might expect some sort of crosslicensing agreement for a lot less than they paid. it was apparently billions of dollars. >> they could have bought blackberry instead. they might as well have.
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to walk away.d >> wasn't this the motorola that was making are going to make mobile phones in texas and they trumpeted how it was so great ringing manufacturing back to the united states? is one thing. >> assembling. >> and now lenovo bought thinkpad from ibm now buying motorola mobility. has learned they can change the economics of the selling to the chinese economy in ways that other companies are inhibited from doing. they can get into china more easily with a chinese owned company. i think this really does
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difficult on what a acquisition this was for google and how much money they wasted but also you can make the argument. has there ever been a great tech merger? you know how many courses at stanford business school they probably come around they still don't know? >> it also shows the misunderstanding the world of patents. thinking owning a lot of patents was a good inca protect you from patent lawsuits. because of the way the court system works, when you buy a company with a lot of patents, all you are doing is putting a bull's-eye on your back and getting more patent law and not less. there are about 2000 patents billion.rice tag is $3 joining us now, andrew blum, a uthor of "tubes," the
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connections of the internet. i went to get the actual subtitle right. a journey to the center of the internet. it is the first book length look at the physical infrastructure of the internet. i know we will go through microsoft and talk a little bit about facebook, but what do you think about a deal like lenovo acquiring motorola mobility? >> again, we are faced with this question about how big can these companies get? do we need to have a checks and balances of different companies separating and having some .riction between them going on athat's microsoft. why is that number two today? , willaking of monopolies
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the justice department use this in a pernicious way? look, the way of the people thinking of the world is framed by the antitrust. they approach their own issues on antitrust as well as the architect their network. new ceo. looking for a steve ballmer came in at a time when he was really handcuffed by the rulings of the justice department because microsoft had grown by using the power of their operating system to force people are strongly compelled people to buy their other products. browser. pre-k's that led to the antitrust problems. what you saw for microsoft is the inability to get away from that. that was the central thing that happened during steve ballmer's tenure. look for a ceo, that still looms as what is
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forcing the company to behave in the way it does. >> let's talk about what's going on over at facebook. got the details from yahoo! and we are talking two completely different operations. >> facebook is crushing it with the numbers they came out with today. nearly $2.6 billion and 90 days. >> 91. , the same 91 days they got $1.6 billion. >> billion. >> and they don't make the thing. they were going from dust off the mobile where they had about 20% on mobile one year ago. they're going through this giant transition and we are now over 50% revenue mobile.
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their changing and growing the business at a massive scale and a massive speed. >> you are going to have to add a lot of the mobile networks to "tubes." just lay out the steps of making a call in the iesco stand having it move all the way to the west coast with photographs and sound? >> important thing to recognize is the denser it gets, the more like a cordless phone it gets. the closer we are to our antenna , it belongs to at&t or verizon, but once it is there, i could not imagine it's more than a couple hundred yards from here. then it is a fiber network like any other. >> it is not about owning the entire pipe or is it?
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>> another company might own the conduit or three dozen companies might on the wavelength through that glass. they are all jostling together and you end up with a really layered networks that run parallel. >> of any seo company like instagram -- when you see a company like instagram -- >> owned by facebook. >> talk about how that changes the internet to handle pictures, netflix, and that role. that pipe?t of >> google. that's the easy answer. you have to draw the line between communication companies and information companies. traditionally telecom moves bits
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from one place to another and now we have companies like google and facebook essentially building their own global infrastructure. it does not necessarily mean they are digging trenches, but they are running their own autonomous network to grow to scale. what that means in the case of instagram is suddenly they get to use facebook's big, global network. >> they are not laying their own fiber. has their own local fiber initiative, not to be confused. is there something that is being consumed by the traffic of netflix and instagram? >> netflix says they are responsible for 30%-40% of the traffic in the evening in the u.s. it's an astounding number. >> that's amazing. at the problem with net neutrality goes away. -- that is a problem. verizon can charge if one istomer of the millions
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using 30% of your bandwidth, maybe you can charge them more and that could be a problem for the profitability of netflix, their growth, and the cost to subscribers. that coryou tell johnson does not like an all you can eat buffet/ netflix like the all you can eat buffet. >> that is the misnomer about net neutrality. do some companies get preferential treatment? you have google and netflix running their own global networks and they're plugging directly into comcast, cablevision. they have already established their own fast lanes. they avoid the public internet for all but the last mile to your house. that is something that has evolved pretty quietly over the last five to seven years i would say. it has fundamentally changed the internet in a way that i don't
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see net neutrality coming up to. >> wow. "tubes, am, author of journey to the center of the internet," very well worth the reading. cory johnson, always great listening to you, editor-at- large of "bloomberg west." what does it take to drive in the nfl today? i'm asking nfl hall of famer dan marino next. ♪
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manning, will peyton
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become the greatest cornerback of all time if he beats the den for -- if you take the denver broncos to victory? who better to ask than dan marino? passingl-time career record, career touchdowns, fifth all-time in total passing touchdowns in the playoffs -- 32. for years, he has been number one in many of these categories but today's nfl, a different style of play, maybe putting in numbers, - that in the passing numbers. do you think you could have competed against the people playing in the game today? >> i don't think there would be any issue for me to play today the way the rules are now. if you can play at a high level,
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you should the able to play of the way the game is now. the speed and the size of players have changed over the years. speed and size. i got a chance to meet some of the denver broncos yesterday during media day. one of them is 340 pounds, six foot four and he's fast. >> that's scary when you are a quarterback. >> what do you make of it when that's coming towards you? >> that's why you have to get rid of the ball, quick release, and have linemen in front of you that can actually block. at peopleever get mad if they do not protect people? >> all quarterbacked a little bit. >> offense, defense, coming up in this game, who has the edge? a verytle's defense is aggressive at the line of scrimmage. they like to get in the receiver's face, go after peyton
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manning. this year was his most prolific numbers that any quarterback has put up in the history of the game. that quarterback i look forward to being very important. can they slow peyton manning down? the other is marshawn lynch, running back from seattle. getting 100 yard games one after another. if you can do it, it takes a lot of pressure off the young quarterback, russell wilson. >> let's talk about peyton manning. not that you're going to give him advice because everyone plays their own game. as a veteran, anything you would like to communicate to him that he deals with the notoriety, the pressure? >> anything i'm going to tell him, he's been through it. he's been a friend for a lot of years. when you see someone like
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that play, you think exactly the kind of quarterback he is? >> he's very cerebral. he calls his own plays. he's very demanding. you can tell he's in total control of his offense and what he's doing. like i said, he does not need advice from me. my advice would be to enjoy the moment, take care of business. you know that he is always thinking about. it is just about winning that ball game. >> it's going to be cold on sunday. just to keep with the spirit, we brought in these issa toner -- isatoner gloves. how did that come about? >> my first super bowl was in 1985 and after that, the company came to me and asked if i wanted somepresent them and do
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commercials with the gloves. my arm -- mine are much more fashionable. >> did you ever think there would ever be this connection? >> they could look for them every year between thanksgiving and christmas because that was the biggest selling season. i make it a joke all the time. it's hard to believe a guy from miami is selling gloves. i must have been a pretty good marketing guy. >> talk about that idea, celebrity pitching. not everybody has it. you have to have that little twinkle to make it work. >> you need to respect the people who are looking at what you are doing and understand the products, enjoy you as a person. peyton manning does great commercials. he comes across really well and people just seem to like him. >> we will continue the conversation. thanks for sticking around. dan marino, hall of famer, miami dolphins.
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he is second backed off the field and what he's doing to help former nfl players in their lives. this is "taking stock" on bloomberg. ♪
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a pro athlete hangs up his cleats is often the toughest day. that's because it's unclear wi hat will happen next. he's here to discuss his role with aarp life imagine program and also joining us emilio officerhief branding for aarp. thanks for joining the conversation. ?hat compelled you
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how did you get connected with dan marino? >> life reimagine is about transitions, what's next? what better person to inspire player whosefl career could be over at 28 years old? there is a whole lifetime ahead of you. nfl and the the players, they found that life reimagine had all of the right tools and experiences. d? what is life reimagine what isemilio said, next in life? >> it's also a program. >> it is a player engagement program. are going through your are,r, what your interests what you want to get into as far as her second career it's a platform. is your personal gps, as we say. you can go and get information.
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for me, it's about building relationships outside of sports and kind of finding what your passions are. for when you are done playing, you're prepared and ready to go. i played 17 years and i had an idea i may be wanted to do tv and maybe get into some businesses but i did not know for sure. i have talked to some current players, you always try to get into some field you might have a passion for and life reimagine the will help you kind of navigate that as time goes on and also if you're a former player looking to make a change in your life, you can find out what you want to do and it will help you. washis is something that launched by aarp last year in the book is "life reimagine the, discovering your new life possibility." what is your next possibility? the tools and experiences that dan is talking about to as many people as possible, as many people as we
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can help along the way. >> thanks for joining us. and dan marino, nfl hall of famer. this is "taking stock" on bloomberg. ♪
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"taking stock" on bloomberg. i'm pimm fox. beat&t is said to still interested in a bid for vodafone according to people familiar with the matter. it remains after at&t gave up the option to did on vodafone for six months. forecasting profits that fell short of analyst estimates, they higher costs for
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aircraft sales. the company said that early stumbles in the obamacare system did not damage profit estimates. the second-largest u.s. medical insurer forecast a profit of more than eight dollars per share. that's a look at some headlines, back to you. snowstorm in the south has turned highways and parking lots leaving thousands stranded in the rhonda mobiles, it's been that way since yesterday. for a first hand account, i want to bring in a first-hand reporter -- a first hand look from our reporter in the atlanta bureau. that is a wonderfully fashionable brown sweater that comes with a story. the sameally, it's sweater i wore yesterday, the same shirt, the same genes. i did not make it home last night. i say that, but i did ok.
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i made it to a friends house and stayed there. there were lots of people, still, whose cars are still on the highways and children who night in school buses. my wife herself had to walk home after a nine hour commute. she walked the final three miles. usually it takes maybe 35 minutes to get home, so a bit of a disaster with the snow and ice. the rest of the country might laugh at it. i'm from new england. it's a little embarrassing to say an inch and a half crippled the city but it's a sheet of ice and they only have about 30 atlanta. the city of it was an absolute nightmare and still cleaning from it today. buteau, explain the atlanta traffic problems for what not familiar with it,
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it takes to empty out atlanta every day. >> you had everyone emptying out of the same time, around 1:00 p.m. admitted and said afterwards it was a mistake and everyone left of the same time. they should have allowed the schools to leave and then the private sector, then the government. instead at 1:00 you have the normal 5:00 rush hour of a metro 5-6,000,000 people all on the roads at the same time and those roads are covered in ice. are bad without ice and yesterday just compounded it. people who come from l.a. dealing with dad traffic visit comment on our bad traffic. the city is notorious. add a thin layer of ice to it and you have over 900 accidents in the atlanta area. there were 1200 in the state of georgia. thankfully, so far only one death reported due to the ice storm but it will be a mess.
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if you own a body shop, you've got good business for several months. michael, does this draw attention to transport issues? you talk about automobiles. it's as much a car culture than l.a., but what about public transport, trains, and so on? >> for years, atlanta has talked about public transportation. it's not like in new york where people rely on the subways and a look at new jersey transit to add value to your home. along a train line, that northeast corridor, that adds value to your home. they have a different view of the down south and they view mass transit as a last resort. you only take it if you cannot afford a car. it is a very different view and right now, this exposes a severe problem in the atlanta area. this is the ninth largest metro area in the u.s.
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the rail system in a mass transit system is very inadequate and they've addressed it for years. you see something like yesterday happen and people are stuck in their cars with little option. there is mass transit, only it does not go to as many places as some cities. >> we want to let you get home. thank you very much, bloomberg news reporter, michael buteau, from our atlanta bureau. whensomething to consider he think about the super bowl matchup in new jersey at metlife stadium. here to tell us how this might affect ticket prices for the lehrman from stubhub. 38 degrees and no precipitation. >> it's looking good. we heard the next nor'easter would be coming into the area. one thing stub
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hub offers is a variety of sporting events and you get to pick deceits seats. prices can change. you can come back to find out the tickets are gone. what happens? >> it's a true marketplace. seeing supply and demand really dictate the price of event. if you have a very high demand events, like the super bowl, prices are high. if you have a low demand event like yankee games at the end of last season when they were not performing well, you see them dip down really low. you seeke anything else in economics, a true supply and demand model. >> i know you purchase tickets to attend the game, going with members of your family. happy birthday to your father. when did you buy your tickets? >> about a week and a half ago. tell us the trajectory of the price of tickets.
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you say there's a pattern but it did not happen this time. spike see a big price after the championship game. it makes sense. their team just got into the super bowl. in this case, denver and seattle tickets,nd bought booked flights, got hotels. then you see a lull, a flat line. there are still steady sales but two, thest day or host city comes in leading to an additional spike. we saw the spy guy talked about but then the ticket prices just started to really bottom out. there was a great fear of the weather. you had two city's far away. transportation was hard. the cityation here in is expensive and you saw the bottom fall out of the market. forward a week, the weather forecast is more accurate.
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38 degrees, no precipitation. >> it is going to be balmy. >> and now the prices are starting to really pick back up. volume is also picking up. talk if you can about some of the non-fun of all, nonsporting events on stub hub. you're putting some energy into local events. not just buying the tickets, but you want this to be an information resource for people because you don't necessarily own the tickets. >> we never owned the tickets. for us, it's helping people discover what to do. traditionally, the people who come to our site know exactly what they want. i want to go to the super bowl. i went to go see "book of mormon." now it's a matter of finding the right price and the right seat. we went to help people. i don't know what to do tonight. i don't know what's going on in the neighborhood?
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we want help you find out everything from the local restaurant, the bar next door, to maybe there is an art museum that you're really wanted to see, and exhibit, some kind of local fair that you might want to attend. byand you could measure it price point. >> and we want to provide recommendations. if you like this, you might like that. >> you might like the price of tickets this year at the super bowl. $2000.d you paid about 2800 dollars currently is the average? >> that's the average price. it's actually declining. there's a lot more volume in the market all of a sudden, a lot more inventory. prices are still coming down. >> you can spend anywhere from $13,530, the most expensive
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lower club, or the upper end zone is about $1100. >> that is actually under face value if you can believe it. your seats? >> lower end zone about 30 rows back. wave, will you wave back? >> of course. [laughter] >> thanks very much, glenn l ehrman, head of communications at stub hub. what is arnold up to? if you ask yourself that n anheuser-busch has done something right typing up their super bowl ad. ♪
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super bowl-busch advertising kicked off today featuring the iconic clydesdale horses making a new friend. additionally, according to ad age, it will run two 32nd spots
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and they 62nd this log-- 60 second spots and two 30 second spots. also, tony ponturo, who recently spent three decades of buying ads for anheuser-busch and now urochief executive of pont management. i want to start with you, tony. you said you have attended 27 super bowl's. >> i did. pretty amazing. instarted this phenomenon 1989 with bud bowl 1 when we were trying to create a conversation for a new brand, bud lite, against the budweiser plan football and 25 years
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later, anheuser-busch is still exclusive in the super bowl and has won many awards doing it. ultimately they grew market share from about 22 to close to fit the today. >> you cannot directly connect, but why not? >> exactly. >> super bowl advertising, $20 million. maybe you're going to do $10 million. no endror -- is tehrerehere in sight? >> there are two arguable answers here, yes and no. >> its advertising. there could be another answer. don't have to throw a hail mary to get a touchdown. in this case, you can spend all of the money for the advertising but because of digital and social media, you can take other
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routes, other ways to advertise around the super bowl without intentionally spending all the money on the media placement. digital offers us those opportunities and that's an advantage you can take. >> let me see if i got some numbers correct. $10 million will get you a very good campaign for the super bowl that would include advertising itself but the marketing for online, digital, things like 11at tom a but at least 1 million people are expected to watch this and this is now advertising almost as a feature film because it's good for the whole family. the amazing statistic. it has become a national holiday. in my opinion, it is beyond sports. the nfc and afc championship games reached about 50 million homes, 50 million viewers. double,r bowl will do
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110 million. it shows you how many other maybe non-sports fans come in to watch the show because of the extravaganza, the advertising, all of the media attention it gotten. >> an interesting statistic is watch the super bowl than the grammy and the oscars combined. >> earlier today, i spoke to mitchell modell and the he says they are changing the store because a lot of women represent half the marketplace. >> what that shows you is not only with the commercials and super bowl but the impact they have as a unit but also for
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bigger brands and what they need to do to get that mass exposure. >> tony, what about arnold schwarzenegger? createle like to celebrity and put something on their brand. it's interesting that bud lite is taking that attack. win the day,ch can sentimentality using clydesdales, dalmatians and then humor. many things going on plus the peripheral activity which is very positive. you need something to grab that attention and obviously arnold is someone who can do that. watch these, they are not watching alone. it's a party were ever you put the screen. -- wherever you put the screen. year --ew one this >> do you have a favorite? >> yes, nothing matters to me
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more than my friends and when i saw the new ad it resonated with me. my buds, my buddies. that resonated. it's fascinating that sentimental touch right there. the,w bud lite is doing, but you can win with emotion and you guys are doing that this year. criedid she actually during a turbotax commercial. what's happening? >> during turbotax? >> you are telling bigger stories, hitting those triggers, reaching our prospects. >> i wonder what happens on april 15. [laughter] tonyaynes, edge, and ponturo, chief executive of management. coming up, an opera star is preparing to sing to her biggest
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performance yet. renée fleming performing at the super bowl. we have more with the chief executive of the l.a. opera next. ♪
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" onhis is "taking stock bloomberg. i'm pimm fox. the novo group has agreed to acquire google's motorola mobility handset business. billion. -- $2.9 google will retain a majority of the motorola mobility patent portfolio. lenovo will receive a license to the intellectual property. you'll hear about all of the details coming up next on "bloomberg west." i want to turn our attention to the super bowl, but not what goes on with the players. before the game kicks off, football players will be treated to a rendition of the "star- spangled banner" by opera star
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renée fleming. fans to theraw new world of opera. joining me now is a man who knows a lot about drawing new fans to opera is christopher koelsh, president and chief executive of the l.a. opera. did you come just for the super bowl? .> i did >> you will hear renée fleming. when you heard you is going to sing the "star-spangled banner come, how did that make you feel? word "opera" shuts worlds down, and it makes people understand this is a really accessible art form. we see these competitions on tv and "theong, "idol" voice." we want to show that their
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talent is far greater than what you see in conventional pop music. speaking of athleticism, in some ways, for someone to achieve what they do in the operatic aage is not dissimilar for player getting to the super bowl . the years of training, expertise in their field, athleticism. >> deconditioning, the voice training, the acting. and these are in performances that can last for hours. that, peoplee say run in the other direction. up renéeason i bring fleming, one thing about "the is theangled banner" octave range is a two octave range experience. not a lot of people can do that offensively -- authentically. will there be this crossover?
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is it mandated for your future success that you need to take opera to make it more popular? >> there is a lot of hand aying of about the gr the audience and we need to introduce the artform to people and meet them halfway. we have a lot of programs to meet people half way. we are in the schools and we have programs to bring them in for nine dollars rather than $300 but we also know that people have lifecycles and we want to introduce them to the artform early. when they are building a career, when they are building a family, we might lose them and they may only come once a year. we're there for them in their 50's and they want to find a way to build the bridge. >> one title, what opera do you want to see? >> la boehme.
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>> thanks to christopher koelsch. thanks for "taking stock." ♪
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captioning made possible by bloomberg television] >> live from pier 3 in san francisco, welcome to the late edition of "bloomberg west" where we cover the global technology and media companies reshaping our world. i'm emily chang. our focus is on energy, technology and future of business. i want to get straight to the lead, google is selling its motorola handset business less than two years after buying it. they agreed to sell it to lenovo for just unders about 3 billion. remember, google bought motorola mobility in 2012 for

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